IREN (IREN) Is Up 9.9% After Major AI Cloud Expansion and $500M Revenue Target – What's Changed

• In September 2025, IREN Limited announced it had expanded its AI Cloud capacity to approximately 23,000 GPUs by acquiring 12,400 additional units and is now aiming for more than US$500 million in annualized AI Cloud revenue by the first quarter of 2026.
• This expansion introduces both NVIDIA and AMD hardware into IREN’s fleet, widening its market reach as customer demand for pre-contracted AI compute continues to outpace available supply.
• We’ll explore how this expanded GPU infrastructure and ambitious revenue target could reshape IREN’s outlook within the investment narrative.

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IREN Investment Narrative Recap

For investors to back IREN today, they need confidence in the company’s ability to rapidly scale AI cloud services while managing the risks from high capital outlays and changing demand for compute. The recent US$674 million GPU expansion directly addresses the biggest short term catalyst, growing into AI cloud contracts as demand outstrips supply, but also heightens the risk of margin compression if market conditions shift or operating costs rise. This move is very material to both the upside and downside case right now.

The most relevant recent announcement is IREN's full year 2025 earnings: US$501 million in revenue and US$86.9 million net income, marking the company’s sustained profitability and improved financial position. This context is critical for assessing how the sizable new capital investment in GPUs could either amplify future earnings growth or strain cash flows if revenue targets are not met.

Yet with every opportunity comes a challenge, rapid investment means investors should closely watch…

Read the full narrative on IREN (it's free!)

IREN's narrative projects $1.5 billion revenue and $1.0 billion earnings by 2028. This requires 45.6% yearly revenue growth and a $913.1 million earnings increase from $86.9 million today.

Uncover how IREN's forecasts yield a $43.92 fair value, a 13% downside to its current price.

Exploring Other Perspectives

Nineteen individual fair value estimates from the Simply Wall St Community spread from US$11 to US$72.52 per share, reflecting wide conviction levels. Against this backdrop, IREN's aggressive AI cloud expansion amplifies both the potential for outsized growth and the risk of high financial leverage, prompting you to assess several viewpoints on its future path.

Explore 19 other fair value estimates on IREN - why the stock might be worth less than half the current price!

Build Your Own IREN Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your IREN research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free IREN research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate IREN's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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